Catalog/Internet retailers see slide in online sales

Catalog/Internet retail slide in online sales

Catalog/Internet retail slide in online sales

“For the first time in a decade, catalog/Internet retailers are seeing a slide in Internet sales as a percentage of total direct sales, according to the Direct Marketing Association’s 2008 State of the Catalog Industry report.” – DMNews.

Internet sales in 2007 were 36% of the year’s total direct sales, coming in lower than the 38% made in 2004.

When postage increased almost 40% last year for catalogers, some reacted by not mailing to Internet customers because of low response rates, according to industry experts. The decision to limit mailings impacted sales numbers more than expected.

The sales decline will be short-lived, as catalogers learn how to better mail to all customers, according to Kevin Hillstrom, president of multichannel retail consultancy MineThatData.

Monica Smith, president and CEO at direct and multichannel marketing firm Marketsmith said marketers need to invest more in prospecting and into creating an engaging online customer experience.

“You’ve got to be in the viral game and you have to be where you’re constituents are.” Smith said in DMNews. “For younger users, this means engaging in blogs, online games and social networking.”

Read the full article, “Where did Internet sales go?” at DMNews.

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